materiality* & Stakeholder Engagement

As we manage our non-financial risks and opportunities, our materiality assessment is a critical first step in defining the ESG topics that matter most to our business and our stakeholders. In 2020, our ESG Task Force prioritized resources around the 10 material ESG issues set in 2019 to create action plans that ensure our business strategies consider these important topics. As we navigate the rapidly evolving and complex space of ESG frameworks, standards and guidelines, we leverage these material issues to prioritize our disclosures and effectively communicate to our stakeholders. As the COVID-19 pandemic continues to impact us around the world, these material issues provide valuable guidance in informing how we care for each other, our families and our communities.

Environmental

Social

Governance

*Materiality, as used in this report, and our materiality assessment process is different than the definition used in the context of filings with the SEC.

Using a standardized step-by-step procedure, we collaborated with a third-party consultant to prioritize ESG topics that have the greatest impact on our performance and that are of utmost importance to our stakeholders.

Define purpose and scope

Define what materiality means for our organization and be clear about our objectives and audience.

Identify potential topics

Create a long list of potential material topics, leveraging external frameworks such as the Global Reporting Initiative (GRI) Standards, Dow Jones Sustainability Index (DJSI), CDP and the UN SDGs.

Categorize

Refine the long list of potential material topics by grouping them into categories.

Obtain feedback

Discuss with stakeholders each material topic in detail to understand its relevance, impact and importance to our business and stakeholders.

Prioritize

Prioritize material topics based on the strategic importance to the business, importance to stakeholders and the social, economic and environmental impact of each topic in the value chain, led by the ESG Task Force.

Engage management

Key leaders review the results of the materiality assessment to validate the outcome and inform our ESG objectives and strategies moving forward.

Seek stakeholder feedback

Continue ongoing dialogue and engagement with our stakeholders to understand and address impacts, risks and opportunities.

We want to know what ESG topics matter most to our business and to our stakeholders. Through formal and informal methods, we reach out to our employees, leaders, suppliers, investors and other key stakeholders for feedback beyond the formal materiality assessment process. We listen so that we can be in a better position to understand and address impacts, risks and opportunities.

We will continue to foster an environment where we take the time to listen first, be present and make others feel welcomed, valued, heard and respected. We aim to demonstrate care and empathy in every interaction, consistently advocating for others, seeking out diverse perspectives and requesting input from all of our stakeholders.